Kroger to buy regional grocer Giant Eagle for $1.65 billion

Kroger, the largest U.S. supermarket chain, announced plans Wednesday to acquire regional grocer and pharmacy retailer Giant Eagle for $1.65 billion. The transaction includes $1.25 billion in cash and the assumption of approximately $400 million in liabilities, with the deal expected to close next year pending regulatory approval.

Giant Eagle, a privately held company, operates 197 supermarkets and 11 stand-alone pharmacies across northern Ohio, western Pennsylvania, West Virginia, Maryland, and Indiana. Stores will continue to operate under the Giant Eagle name as part of the agreement.

The acquisition is set to strengthen Kroger's market position amidst increasing competition from big-box retailers like Walmart and Amazon, as well as discount chains such as Aldi. Industry analysts suggest the deal provides Kroger with a gateway to new markets, including the mid-Atlantic and New England regions.

This move follows Kroger's abandoned plan to merge with competitor Albertsons, which was blocked by regulators earlier this year over antitrust concerns. The current acquisition is subject to regulatory review, and both companies anticipate divesting a limited number of Giant Eagle stores to secure necessary clearance.